Axmouth and Branscombe leases on residential properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Leasehold owners in Axmouth and Branscombe will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Axmouth and Branscombe with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancers that we work with procure Axmouth and Branscombe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Lewis was the the leasehold proprietor of a 2 bedroom apartment in Axmouth and Branscombe on the market with a lease of just over sixty years outstanding. Lewis informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Lewis to exercise his statutory right. Lewis obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Dr Austin López acquired a purpose-built flat in Axmouth and Branscombe in September 1998. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical properties in Axmouth and Branscombe with a long lease were valued about £233,200. The average amount of ground rent was £60 collected annually. The lease elapsed in 2086. Having 61 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 plus professional charges.
Last Christmas we were phoned by Mr R Thomas , who completed a one bedroom flat in Axmouth and Branscombe in August 2010. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparative flats in Axmouth and Branscombe with an extended lease were in the region of £166,800. The mid-range amount of ground rent was £50 invoiced quarterly. The lease came to a finish in 2075. Considering the 50 years remaining we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including costs.